Hello All,
I was just wondering if anyone could offer me some advice. I have found a block of shops which are returning around 20% pa at the moment. Problem is, a friend lives a few suburbs away and says that it is a very rough area. Can anyone please tell me whether you would still take on this deal, and what steps you would take for due dilligence. I’m not sure how to find out about past crime in the area, does anyone know how?
Thanks,
Luckyone
To be honest, i would not worry what your friend says.
An old saying “Out with the old and in with the New” Over time, the place will clean up and improve. Many areas in Brisbane and Sydney you might remember, were well noted and heard of to be real rough areas, today many of those places still exist yet are some of the more expensive areas.
Good Example. Inala in Brisbane, very rough at the time houses were under 50k, over a few year period the properties are now worth over 200k. Over time, things will change and improve. A good investor will see these problems and wont be discourage, cause eventually suburbs will improve, due to government bodys, government funding and big developments and investments opportunities that larger corporations and companies can see.
If your interested in the crime area, go visit the police in that area, ask them, what is the crime rate like? Is this similar to other suburbs? What is the government doing to improve this area of crime?
Simply questions they are, but, they can hold the answer to what is happening to that area to control and prevent the crime waves that happen.
Thankyou SIS, I’ll take all you said onboard. I’m not sure if I’m going to buy it now as a better deal has come through since. I’ll put it on the backburner for the moment, but thanks for your advice anyway.